Calculating Churn Rate

Customer Churn Rate = (Customers Lost During Period ÷ Total Customers at Start of Period) × 100

Example: A SaaS company starts the month with 1,000 customers and loses 30 during the month. Monthly churn rate = (30 ÷ 1,000) × 100 = 3%

Three Levels of Brand Awareness

1. Unaided (Top-of-Mind) Recall

Respondents are asked an open-ended question — "What brands of [category] can you think of?" — with no prompting. The first brand mentioned indicates the strongest "top-of-mind" position; total brands mentioned indicate overall unaided awareness.

2. Aided Recall

Respondents are shown a list of brand names and asked which they recognize or have heard of. This produces higher percentages than unaided recall since prompting jogs memory.

CLV Formula

The basic CLV formula: CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan

Example: A SaaS customer pays USD 50/month (average purchase value), stays subscribed for an average of 24 months (lifespan), purchasing monthly (frequency = 1/month). CLV = USD 50 × 1 × 24 = USD 1,200

How NPS Is Calculated

NPS = %Promoters − %Detractors

Respondents are grouped into three categories based on their 0-10 rating: Promoters (9-10) are loyal enthusiasts who will keep buying and refer others. Passives (7-8) are satisfied but unenthusiastic customers vulnerable to competitive offers. Detractors (0-6) are unhappy customers who can damage your brand through negative word-of-mouth.